Reed Hastings to step down from Netflix board

In a letter to investors, Netflix said Reed Hastings will not run for re-election at the June annual meeting and plans to focus on philanthropy and other interests. Following the news, the company’s stock fell about 8%.

Reed Hastings co founded Netflix 29 years ago and led its shift from a DVD by mail service to a leading streaming platform. He stepped down as CEO in 2023. In a shareholder letter, Netflix said its mission to entertain the world with diverse movies and series remains unchanged as does its full-year financial outlook.

Netflix did not say how it will use the $2.8 billion fee it received after losing a deal involving Warner Bros. and HBO. The company had tried to buy Warner Bros, but later stepped back, allowing Paramount Skydance, led by David Ellison, son of Larry Ellison, to move ahead with the purchase. In its earnings report, Netflix said revenue rose to $12.25 billion, up 16% from last year and slightly above expectations of $12.18 billion.

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Netflix told investors that buying Warner Bros. was optional, not essential, and highlighted its future growth plans. The company said it is boosting engagement by expanding into video podcasts and live events, such as the World Baseball Classic in Japan. It also plans to use technology to improve user experience, and increase revenue, with advertising expected to reach $3 billion in 2026, about double from the previous year.

"Netflix said in an SEC filing that Reed Hastings’ decision not to seek re-election is not due to any disagreement with the company. Hastings also said Netflix changed his life, and no successor has been named."

"Reed Hastings said his favorite memory was in January 2016, when Netflix became available to most of the world. He also thanked co-CEOs Ted Sarandos and Greg Peters, saying their strong leadership allows him to focus on new things."

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